Summarize the information fromthe 3 years' financial statements, theratio calculations, and industry comparisons provided in the case topresent possible solutions to the company's profitability problems. Be sure to conclude with projecting the future success of the company based on your findings.

Industry Averages

2016 2015 2014 2016

Current2.3X 2.3X 2.3X 2.2X 2.1X

Average collection period 45 days 46 days 47 days 50 days

Inventory turnover 8.3X 8.2X 8.1X 8.3X

Fixed asset turnover 2.7X 3.0X 3.3X 3.5X

Total asset turnover 1.1X 1.2X 1.3X 1.5X

Debt ratio 50% 50% 50% 54%

Times interest earned 8.1X 8.2X 8.1X 7.2X

Fixed charge coverage 4.0X 4.5X 5.5X 5.1X

Gross profit margin 43% 43% 43% 40%

Operating profit margin 6.3% 7.2% 8.0% 7.5%

Net profit margin 3.5% 4.0% 4.3% 4.2%

Return on assets 3.7% 5.0% 5.7% 6.4%

Return on equity 7.4% 9.9% 11.4% 11.8%